Forex Forecast And Cryptocurrency Forecast For March 29-april 2

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First, a review of last week’s events:

EUR/USD

The dollar has periodically changed its status since the COVID-19 pandemic started, becoming either a safe haven currency or a risky asset for investors. For example, the US currency declined amid rising stock markets in November-December 2020. And since January, the dollar began to rise along with the S&P500. Now this index is in the area of its all-time high­: 3.795. The DXY dollar index is also quoted in the area of annual highs: 92.72.

The main reason for this volatility in the USD is the coronavirus situation and the US government's response to it. And the Fed threw in yet another riddle last week. Recall that it has become clear following the meeting of the Open Market Committee (FOMC) that the US Federal Reserve does not intend to raise interest rates until at least 2023. The Fed is not going to change other parameters of the quantitative easing (QE) program either. The bill signed by US President Joe Biden on a new $1.9 trillion package, according to the Fed, is quite a sufficient measure to stimulate the economy.

Just a few days later, Fed Chairman Jerome Powell announced that the regulator would gradually phase out $120 billion in monthly asset purchases from the moment the US economy almost fully recovers. And this, according to forecasts of the Fed itself could happen this summer.

So, it turns out that the Government and the Senate may start a debate on winding down QE in the near future. But what about the information that the Biden Administration is now discussing another new package of fiscal stimulus for another $3.0 trillion?

The market "sided" with Jerome Powell this time, and the dollar continued to strengthen its positions. As predicted by the main forecast, which was voted for by the majority of analysts (65%), the EUR/USD pair went down, broke through the support at the 200-day SMA at 1.1825, and dropped to the 1.1760 horizon. This was followed by a slight rebound and a finish at 1.1790;

GBP/USD

After a two-week stay in the sideways channel 1.3775-1.4000, the widespread strengthening dollar pulled the pair down. 55% of the experts were on the side of the bears, and they were right. The GBP/USD pair reached the local bottom at 1.3670 on Thursday, March 25, after which it returned to the lower border of the side channel, which turned from support to resistance. The last chord of the week sounded near it, at the level of 1.3790;

USD/JPY

The large-scale correction of the pair to the south never happened. Just 50 points were enough for the pair: having dropped to the level of 108.40, it turned around and went north again, following the strengthening dollar. The nearest target of the bulls was designated the height of 110.00, and the pair almost reached it: the week's high was fixed at 109.85. After that, it declined slightly and completed the working five days at 109.67;

Cryptocurrencies

The forecast for the past week, which was supported by the majority of experts, was not most optimistic for the bulls. It assumed the cessation of growth, the breakdown of bitcoin's lower boundary of the upward channel and its lateral movement in the range of $50,000-60,000. Unfortunately for investors, this is exactly what happened. The BTC/USD pair was at a height of $60,000 on March 20, but it found a local bottom at around $50,290 on Thursday March 25. And if the fall in bitcoin was 16%, then some of the top altcoins lost about 25% in price.

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Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is ...

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